Flagship Healthcare Properties Acquires Atrium Health Anchored Portfolio
CHARLOTTE, NC – May 9, 2019 – Flagship Healthcare Properties (“Flagship”), a Charlotte-based healthcare real estate firm, has announced its acquisition of a 121,741 square foot portfolio featuring six Class A medical office buildings (“MOBs”) in the Charlotte metropolitan area. Three of the MOBs are located in Concord, N.C., with the remaining three in Kannapolis, China Grove, and Locust.
The portfolio, which is 91% occupied, is anchored by Cabarrus Family Medicine, part of Atrium Health. The network of family practices and its sub-specialty offices including sports medicine, orthopedics and rehabilitation, leases over 75% of the total square footage. Atrium Health is one of the leading healthcare organizations in the Southeast and one of the most comprehensive, not-for-profit systems in the country.
“The transaction has been a collaborative effort and we are excited to support Cabarrus Family Medicine in their mission of providing quality care to the communities they serve,” said Gerald Quattlebaum, Senior Vice President of Acquisitions at Flagship. “The acquisition of these six medical office buildings expands our footprint in the Charlotte market and furthers our long-standing relationship with Atrium Health.”
Flagship Healthcare Trust, Inc. (“Flagship REIT”), Flagship’s private real estate investment trust, purchased the portfolio from CFM Medical Properties, LLC (“CFM”).
“All our physicians and owners at CFM are pleased to have worked with Flagship on the recent sale of our portfolio of medical offices,” said Dr. L. Allen Dobson, Senior Partner of CFM. “They are a trusted and professional organization and we felt that we made the right choice in selecting them for the ownership and stewardship of the properties.”
“First and foremost, this represents an opportunity to support a tremendous group of physicians who provide best in class healthcare in the Charlotte market,” said Charles Campbell, Co-Managing Partner and CEO at Flagship. “We appreciate the trust and confidence that they have placed in us and the Flagship Team is excited to be associated with this great practice going forward.”
Flagship will provide property and asset management services, as well as accounting and lease administration for the buildings.
Flagship partnered with Charlotte-based Faison Enterprises on the acquisition of the portfolio. Brannen Edge, Co-Managing Partner, President, and Chief Operating Officer of Flagship commented, “We are honored to establish our first venture with the highly respected Faison team, and look forward to creating value and growing the relationship in the years to come.”
Cliff Berryman, Vice President of Investment Sales for Flagship represented the buyer.
First National Bank (F.N.B.) provided financing for the transaction.